In the Aira Fitness addendum for Virginia, what is the role of Aira Fitness Franchising, LLC?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
AIRA FITNESS FRANCHISING, LLC ADDENDUM TO DISCLOSURE DOCUMENT FOR THE COMMONWEALTH OF VIRGINIA
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Aira Fitness Franchising, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure. The following is added to Item 5:
The Virginial State Corporate Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owned by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement.
The following statements are added to Item 17.h.:
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause, "as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable."
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, Aira Fitness Franchising, LLC, as the franchisor, is subject to specific amendments and additional disclosures within the Commonwealth of Virginia. These modifications address the Virginia Retail Franchising Act, particularly concerning the deferral of initial franchise fees and other initial payments from franchisees until Aira Fitness Franchising, LLC has fulfilled its pre-opening obligations as outlined in the franchise agreement. This measure is mandated by the Virginia State Corporate Commission's Division of Securities and Retail Franchising. This addendum ensures that franchisees are not required to pay these initial fees before Aira Fitness has met its obligations. This provides a level of financial protection to the franchisee during the initial phase of the franchise agreement.
Additionally, the addendum addresses termination clauses within the franchise agreement. It states that under Section 13.1-564 of the Virginia Retail Franchising Act, Aira Fitness Franchising, LLC cannot cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement do not constitute "reasonable cause" as defined by Virginia law, that provision may not be enforceable. This protects franchisees from potentially unfair or arbitrary termination of their franchise agreements, ensuring that terminations must be justified under Virginia law.
In essence, the role of Aira Fitness Franchising, LLC in the Virginia addendum is to comply with the specific regulations and protections afforded to franchisees under Virginia law. This includes deferring initial fees until pre-opening obligations are met and adhering to the "reasonable cause" standard for franchise terminations. These stipulations modify the standard franchise agreement to align with Virginia's legal requirements, providing additional safeguards for franchisees operating within the state.